Last year alone, a number of major investors from Italy with high value-added products decided to set up operations in Lithuania. These included the high-tech enterprise Gruppo Fos, IT giant Valuetech, and an Italian capital medical equipment producer to be set up in Klaipėda Free Economic Zone. And two upcoming conferences in Italy will help to further promote Lithuania as a location for Italian businesses to grow and develop.
Strategic location, attractive taxation and competitive costs
One of the key factors that convinces Italian businesses to invest in Lithuania is the opportunity it gives to access neighbouring markets like Russia, Belarus, Poland and the Nordic countries using Lithuania’s well developed sea, land and air transport infrastructure.
“Convenient access to these markets and the country’s location between East and West are very important factors in attracting Italian investors,” Ieva Gaižutytė, president of the Italian-Lithuanian Chamber of Commerce, said.
Taxes in Lithuania are lower than those in Italy, another key value often mentioned by Italian investors. The profit tax in Italy goes up to 27.5%, with income tax set between 23% and 43%, and value added tax at 22%; the equivalent rates in Lithuania are 15%, 15% and 21% respectively.
Investors are also attracted by the tax incentives offered to companies who set up in one of Lithuania’s seven free economic zones. In addition, salaries in Lithuania are around three times lower than in Italy. The average salary in Italy is slightly more than 1,500 Euro, while in Lithuania it is a little over 500 Euro.